imputation system

Definition:

a system for taxing the profits of companies in which profits are taxed at the same rate whether or not they are distributed to members, tax is payable when a distribution is made and the recipient of the distribution is credited with having paid income tax on the payment. In the United Kingdom, corporation tax has been on an imputation system since 1973, and in the Republic of Ireland the imputation system has been applied to corporation tax since 1976.



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